Economic Insights
Deal reached on Greek bailout
Euro Zone finance ministers discussed final agreements on Greece’s bailout plan in Brussels for more than ten hours. The bailout disburses EUR34.4 billion to Greece on 3 December for its repayment. Greece aims to lower its debt-to-GDP (Gross Domestic Product) ratio to 124% in 2020, and to 110% in 2022.
Eurogroup Chairman Jean-Claude Juncker confirmed the deal after the Euro Zone finance ministers meeting. He said the plan was good enough to send Greece onto a sustainable recovery path, but also stressed that the meeting process was very tough. In addition, Juncker said the Eurogroup will grant three tranches of bailout to Greece in the first quarter of next year, according to its fiscal condition. German Finance Minister Wolfgang Schaeuble mentioned that the Eurogroup will complete the bond buying program before the final decision on Greece’s next bailout.
It seems there was no need to be pessimistic about Greece’s worries this round, as I mentioned earlier, but this does not mean Greek debts can be delayed indefinitely.
The single currency reached as high as 1.3009 against the Greenback after the announcement that the deal was made, and retraces below 1.30 territory at this moment.
Bank of England (BoE) announcement triggers wave in currency market
UK Chancellor George Osborne announced that Mark Carney will be appointed as the new President of the Bank of England for five years. Currently, Carney is also President of G20’s Financial Stability Board.
In earlier days, Bank of England Deputy Governor Paul Tucker was the most likely choice. In addition, Goldman Sachs chairman Jim O’Neill was also a candidate.
This is the first time a non-British resident will be president of the Bank of England. Prior to his position at the Bank of Canada, Carney worked at Goldman Sachs.
The GBPUSD quickly broke 1.60 to 1.6050 by a huge rally after the announcement.

Currency Insights
GBPAUD – Next resistance near 1.5335
The Pound rallied yesterday on the reaction to the Bank of England’s new president, thus I expect the currency might face some retracement against the commodity currency, given the facts of improving fundamentals in China and sentiment on the Greek crisis.
On the GBPAUD H1 Chart, the next resistance stands at 1.5335 currently. The coming support is at 1.5268, and the 2nd support is at 1.5210.

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